Introduction Union country. The United Kingdom being the

Introduction

 

A market can be defined as the place where
buyers and sellers meet to satisfy the supply and demand for specific goods or
services, these goods can be classified as groceries, electronics and building
materials just to name a few, while services are represented as labour. The
main goal of this papers it to explain the different types of Active Labour
Market Policies and evaluate how effectively do these polices reduce long-term
unemployment in a specific European Union country. The United Kingdom being the
country in focus has for some time struggled to create a balance between the
supply and demand of labour, the prevalence of unemployment in Europe has
caused the United Kingdom to create public intervention policies that are aimed
at reintegrating the young unemployed citizens, old workers and those that lack
the prerequisite skills back into the job market. Over the years statistical
information on the rate of unemployment has provided the United Kingdom with a
wealth of knowledge, this knowledge suggests that some disequilibria in demand
and supply of jobs will inevitable offset the growth in the county’s Gross Domestic
Product. To battle the threat against the Gross Domestic Product, strategic
policies such as government subsidies, public employment services and even
training programs are enacted. The implementation of each policy is not without
expectation of success and it comes at a percentage cost of the Gross Domestic
Product, therefore mechanism must be put in place to measure the effectiveness
of each Active Labour Market Enactment. Robinson
(2000) argued that Training programmes generally do not produce better
outcomes. There is no convincing evidence that work programmes improve
employment and recruitment subsidies often suffer from low take-up.

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Unemployment

 

The state of being unemployed is classified as,
that point in life, a person is faced with the challenge of providing for one’s
own basic needs without a job. Unemployment can be caused due to an unbalance
between the demand for jobs and the ability to supply them, this scenario is referred
to as Structural Unemployment. If there is a case where constraints other than
that of the business cycle, causes an underlying shift in the economy, rendering
it difficult for some set of persons to locate a job, this case is called
Cyclical Unemployment (Amadeo, 2017). To produce
employment during the result of whether the case may be a Cyclical or
Structural unemployment, the government would create techniques to reintegrate
the unemployed back into the work force by implementation of Active Labour
Market Procedures.

 

 

Types
of Active Labour Market Policies and their Effectiveness

 

The principal dynamic of an Active Labour
Market Policy programs, creates that means by which the government can intercede
into the job market to assist those seeking meaningful employment. These
policies are intended to enable the jobless to reintegrate themselves back into
the world of work (Bista 2015, p.7).
Active Labour
Market Policies as an approach to the reduction on long term unemployment have
a history that dates back to the 1970s during the oil crisis. Evidently labour
policies measures, that was implemented at that time encompassed only those
that were already employed and less those that were unemployed, these measures
incorporated mechanisms to help the employed, adapt to regional imbalances, migration
assistance and upward employment
portability. The concerns of the true intentions of the Active Lavour Market
Policies dynamics have definitely changed the aim of the policies and now new
measures has turned out to be solely focused on the jobless (Klaus, 1995).
Active Labour Market Policies are ordinarily ordered into three main
classifications, which are, Job Search Assistance, Training
Schemes and Government Subsidies. These three programmes are characterized
and clarified in the accompanying areas.  

 

 

Job Search Assistance

 

The objective of job
search assistance is to help the job seekers to, exhaust all search options, to
ensure proficiency of the search procedure and to provide quality in job
matching. Employment search programs compose of, the quest for new employment
training, counselling, monitoring, job clubs, and sanctions. One ramification
of this programme is that, the pursuit of employment help, will have just a
fleeting impact unless landing a position changes preferences or future
employability. In a most ideal situation, pursuit of employment help, can have
a positive but quantitatively little effect. In the most pessimistic scenario,
long haul impacts might be zero or somewhat negative if inadequate driving
force is created by the program (Kluve, 2014,
p.9).

 

Government Subsidies

 

Government Subsidies are aimed at helping enterprises to maintain their
employees and even hire new jobseekers. Subsidies can consist of wage subsidies
and self-employment assistance such as grants. Government can incur high cost
to implement this strategy, considering that the long and short-term effects of
enacting subsidies can have a positive impact in the long run and short, for
this reason it would be an investment well-made (Bista, 2015, p.7). Kluve
(2014, p.11) argued that unless the subsidised work
changes preferences for work or future employability (the ‘job ladder effect’
whereby. workers prove their productivity to the firm and remain in employment
beyond the duration of the subsidy). The risk of displacement effects is particularly
high for these programmes. This is because it is difficult to completely avoid
scenarios in which, for instance, subsidised firms improve their market
position relative to non-subsidised firms, or hiring of subsidised workers
occur, this would have occurred also in the absence of the subsidy. Government
costs are also expected to be high. These projects are observed to be relatively
exorbitant on cost and are normally focused on the disadvantaged groups for
whom different measures have been taken and these were demonstrated to be
inadequate. Such measures can assume an imperative part in emphatically
affecting the state of mind of managers to the long-term unemployment, through
bringing them together and providing an opportunity of testing them at lower
than full wage costs (European Commission, 2017).

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